Beauty Brands Leave China as Consumers move to Local Products
L’Oréal announced in early January 2014 that it is pulling the Garnier brand from China, following Revlon’s decision to withdraw its entire operations out of the country. Oru Mohiuddin, Senior Beauty and Personal Care Research Analyst at Euromonitor, states that the two companies can no longer complete with local Chinese players. Consumers in China are deciding that it is no longer savvy to pay a premium price for a Western brand as they feel local beauty products perform the same at a lower price. L’Oréal should fare better than Revlon as L’Oréal still has brands in the country such as Maybelline, which ranks first in the Chinese color cosmetics industry.
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